Business

Krupp might bid again

Article Abstract:

Krupp Hoesch could carry out further hostile bids, according to chief executive, Gerhard Cromme. The company has dropped an offer for Thyssen and the two companies are to merge their steel activities. This followed Thyssen's announcement of a defense against a hostile bid. Cromme has been criticised for threatening the consensus approach embedded in the social market economy in Germany. Jobs are likely to be shed from the merged company which could lead to industrial relations disputes.

Cost savings drive merger logic of German giants

Article Abstract:

Thyssen and Krupp Hoesch are to merge, creating the largest engineering group in Germany. A previous attempt at a merger collapsed after opposition from the IG Metall labor union and attacks on Deutsch Bank for supplying a Thyssen board member and finance and advice for Krupp. Annual cost savings of 450 million German marks could be achieved, according to management. The chief executive for the new company will be chosen in late Nov 1997. The stock prices for both companies have risen.

Steel structure that should stand the strains of Emu

Article Abstract:

There are a number of benefits that could arise from the planned merger between Hoogovens and British Steel, such as economies of scale. The chief executives were recently appointed in each company, and merger talks followed. The companies will benefit from improvements in their capital structure leading to a cut in the cost of capital. A single board is planned and there will be an emphasis on customer focus. The new company will be in a stronger position for large contracts.